August 18, 2020 (MLN): Meezan Bank Limited has unveiled its financial results for the 1HCY20 ended June 30, 2020. As per results, the bank has reported its net profits of Rs 11.58 billion (EPS: Rs 8.97), showing significant growth of 65.38 % against net profits of Rs 7 billion (EPS: Rs 5.42) of the same period last year.
The robust growth in earnings was attributable to higher Net Spread earned (56% YoY) on the back of volumetric growth in assets driven by Power/Ijarah Sukuk. Moreover, a sharp rate cut did play to the bank’s advantage, AKD research mentioned.
During the period under review, Non-Funded Income (NFI) increased by only 8.6% YoY on the back of higher foreign exchange income, up by 21% YoY along with capital gains of Rs 965 million.
According to a report by EFG Hermes, Fee and commission income took a hit owing to the COVID-19 outbreak, however, a sharp improvement in NIMs offset weaker fee income.
Meanwhile, the overall other expenses surged by 26% on the back of higher operating expenses and workers' welfare funds.
|
Consolidated Profit and Loss Account for the half-year ended June 30, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-20 |
Jun-19 |
% Change |
|
Profit/return earned on Islamic financing and related assets. Investments and placements |
57,832,671 |
40,011,089 |
44.54% |
|
Profits on deposits and other dues expensed |
25,486,719 |
19,255,013 |
32.36% |
|
Net spread earned |
32,345,952 |
20,756,076 |
55.84% |
|
OTHER INCOME |
|
|
– |
|
Fee and commission income |
2,963,134 |
3856279 |
-23.16% |
|
Dividend income |
91,127 |
108,193 |
-15.77% |
|
Foreign exchange income |
1,298,113 |
1,074,466 |
20.81% |
|
(Loss) / gain on securities-net |
965,629 |
(141,029) |
– |
|
Other income |
245,734 |
221,978 |
10.70% |
|
Total income |
37,909,689 |
25,875,963 |
46.51% |
|
|
|
|
– |
|
OTHER EXPENSES |
|
|
– |
|
Operating expenses |
14,584,297 |
11,677,102 |
24.90% |
|
Workers' Welfare Fund |
464,378 |
344,685 |
34.73% |
|
Other charges |
83,686 |
2,155 |
3783.34% |
|
Total other expenses |
15,132,361 |
12,023,942 |
25.85% |
|
|
22,777,328 |
13,852,021 |
64.43% |
|
Share of results of associates before taxation |
(355,942) |
(300,731) |
18.36% |
|
Profit before provisions |
22,421,386 |
13,551,290 |
65.46% |
|
Provisions and write offs -net |
3,097,096 |
1,052,237 |
194.33% |
|
Extraordinary / unusual items |
– |
– |
– |
|
Profit before taxation |
19,324,290 |
12,499,053 |
54.61% |
|
Taxation |
7,741,200 |
5,495,046 |
40.88% |
|
Profit after taxation |
11,583,090 |
7,004,007 |
65.38% |
|
Basic and diluted earnings per share (Rupees) |
8.97 |
5.42 |
65.50% |
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